Types Of Demand & Goods Flashcards
1
Q
What is derived demand
A
Demand that comes from the demand for something else e.g. demand for machinery comes from the demand for the good it produces
2
Q
What is composite demand
A
When goods have more than 1 use e.g. milk makes cheese, butter & yoghurt
3
Q
What is competitive demand
A
Demand for goods that have close substitutes e.g. tea & coffee
4
Q
What are complimentary goods
A
When both goods are needed together e.g. car & petrol
5
Q
What are inferior goods
A
Goods purchased if you cannot afford better quality ones
6
Q
What are luxury goods
A
Goods you would buy if you had more RDI
7
Q
A
